sorry to be off topic but does someone know a trick to log back into an Instagram account? I somehow forgot my login password. I love any assistance you can give me!
@Jayson Lee Thanks for your reply. I found the site thru google and Im in the hacking process now. I see it takes a while so I will reply here later when my account password hopefully is recovered.
Under contract now using FHA on a $340k home built in 2014 over 2,400sqft in central Florida, we did not offer anything over asking price and the seller is paying a portion of our closing cost . We were approved for both FHA and Conventional but ultimately choose FHA because the interest rate was lower (locked in 2.8%) and the monthly PMI payment was $50 cheaper. We will refinance in a few years and get conventional to knock off the PMI. But I said all that to say everyone’s experience will differ, don’t get discouraged guys ❤️
Hey what’s up guys is Chad Seagraves here back with ANOTHER REAL ESTATE video. I’m today’s video we are going to talk about the TOP REASONS why this market ABOUT TO BUSS. And if you stay until AFTER the video I’m going to show you 7 ways to HACK real estate and make MILLIONS. Make sure to hit like, subscribe, and also don’t forg.... *dies of lung failure for not breathing at all during the intro.
bruh i straight up LIKE just for the full respect in keeping it real and telling me the click bait answer in 5 seconds and then also having the gaul to admit it!! love it lol
My husband and I are in escrow right now. FHA loan, no contingencies, $6K above asking price, and paying for all our closing costs. We went up against 7 other offers here in the Southern Arizona area.
The SELLER cares. Conventional loans have less hoops to jump through so the deal is more likely to go through and actually close. If you are up against multiple offers the seller's usually gives preference to conventional loans over FHA.
It's not even just the loan type. I feel for first time buyers especially. In a seller's market, your lender and agent also impact how seriously your offer is taken. Local lenders who are known to vet their clients thoroughly (and agents who are known to do the same) are given greater credence that the sale will close. The seller wants the buyer most likely to go the distance, not necessarily the highest offer or 'best' terms. It's been that way since at least 2014. Also - love the shitty flute!
as a first time home buyer, I originally was looking to get a house with FHA. but after a week it was really hard. Switched to conventional after learning about the benefits. went into escrow for a nice home a week later. def the way to go!!
@@MsPink0769 yes but there are benefit to both with a conventional loan show your more stable they don't have to go off your sopuse income no pmi. FHA can be good to pro are you dont but too much down it usually look at a stepping stone but you will have a pmi but are ways to get around that both have pros and cons.
@@MsPink0769 yes you pay more out of pocket upfront but the benefit of that is that it can lower your APR %, depending on how much you put down. once you reach a certain amount of equity that premium mortgage insurance you pay monthly is no longer a cost. this is what ultimately can save you a couple thousand. if you get FHA you have to pay that PMI for the life of the mortgage. better to pay upfront but also don't wanna be house rich and money poor. pay what you can afford. way the pros and cons. FHA requires at least 3.5% downpayment (the pro) however its much harder to get your offer accepted on a home. (con)
I got my house (in Phoenix) April 2020. Right on the cusp of everything getting really crazy. We made 12 offers on 12 different places within our budget on FHA. Didn’t get any of them. Once we went conventional (lowered our price of houses we were looking at) we got one the first try with no concessions and we used the down payment assistance. So it only cost me about $1500 out of pocket to get into the house. Couldn’t have had better timing.
I went to get pre approved from my bank and they asked what my credit score was and I was like idk, 700ish. They ran my credit and it turns out It was 799
All you can really do is save money. It will take years depending on where you live. Think about it this way, if the market crashes, then you have money saved up to jump in. If not, you’ll eventually save up enough to buy a house. It took me 12 years, but it’s doable.
I recently bought a triplex in Idaho with FHA. Only had to put 3.5% down versus 25% percent down. 25% was on the fringe of what I could afford, so it was awesome to be able to finance with such a small and less risky down payment.
Just managed to find a sweet new construction townhome deal in suburban ATL with an FHA loan + 1st time homeowner DPA + builder's incentives. Got one of the first lots after looking around for almost 2 years. Dodged any more shenanigans, discrimination or competitive offers. Depending on the market there may still be hope for you if you're serious, qualified and willing to look for new builds. Appreciate the content as always Javier!!
@@curatedchristinaa Hey check around the Stonecrest, Lithonia, and North Decatur areas. Prices have not skyrocketed as far as things further inside of the Perimeter. Central to Southwest Gwinnett County is also an option.
I'm kind of being forced into buying a home right now because I'm being forced to move, and I cant stomach paying more money to rent a crappier place than I'm in now ugh. Luckily it's only a year earlier than I was planning and I qualify for a decent conventional loan at a good interest rate but the market in AZ is still crap. I think I would be freaking out right now if I hadnt been watching Javier for a few years and taken a first time homebuyer course around Thanksgiving. I highly recommend anyone who's considering buying in the next few years to take one early, I regret not doing it sooner. It was sooo helpful.
I’m glad you specifically say this is what’s impacting your market in Arizona and that it’s still possible in your area. Here in PA it’s not like that, in most areas. Yes our market is red hot but FHA isn’t necessarily looked down at in this manner. Now, of course areas vary in PA, and it’s also up to the seller to say NO FHA. I’m a realtor in PA and I’ve helped first time homebuyers get their offer accepted, using FHA. It’s all about strategy and realistic expectations. If your realtor always responds with “yes it’s all possible” then chances are you’ll be getting used to rejection and viewing 10-30 homes before getting tired and giving up.
People! Use whatever loan you want! Including FHA. The only THING any Seller understands is CASH. If you use any type of loan be it Conventional, FHA, or VA Sellers don't understand a word of any of that. All they care about is whether or not you are going to waive the inspection, the appraisal, or have some crazy conditions. That is it. If anybody has a prejudice against a particular loan type it is Realtors, not Sellers.
Pretty sure people would choose conventional if they could. I'm a loan officer and would always choose the best loan for a client based on their score and how much down they got available. End of the day, many people just don't got options. We always try conventional but scores are just not always high enough.
We are currently trying to purchase (CA) with FHA and it has been heart break after heart break. Even offering $40k over cash hasn’t helped us secure a home. This has been really discouraging for my wife and I. Will have to look into conventional. Thanks for the another great video!!
Going conventional should help. The reason why is because FHA loans impose things on sellers that conventional loans are more lax on. Just a head's up: we bought in the Phoenix Metro market (2021). We had to buy "as-is", waive the appraisal contingency and even submit a love letter with no protected class info - just stuff like what we loved about the home and community, no mention of a spouse / kids, etc. Oh, and we offered a down payment of 42%, with $10k EMD. We won a 7-bid war, and the home we bought needs a good bit of work: foundation repair, drainage, new roof, new flooring, etc. Just be ready if you're in a crazy market like ours.
look into conventional.... also a tip that helped us secure a home in this crazy market (and helped two of our friends on their first try) *offer to pay over asking by X amount AND if it doesn't appraise to that amount you offered, then say you will pay the difference from asking to your offer IN CASH. This way you are VERY similar to the cash offers without having to have to pay FULL in cash. (you are just paying that small amount in cash)....with this always make sure you have the cash to back up that offer as it will be in writing. GOOD LUCK:)
I got lucky. I’m currently under contact with an FHA loan and will close next month with seller who is moving into a new home with a VA loan...haha. I qualified for conventional, but was maxed at a certain point which is why I had to go FHA. Javier is right about people looking down on those who have FHA loans, it sucks and it’s unfair. I’m always going to root for more regulations because it’s crazy out there.
I live in California, so as everyone knows, houses are easily $500K plus here. I’ve been saving right out of college. Took me 12 years to save up for 20% down. I also got lucky that the seller was able to pay half my closing costs. Anything but 20% is a waste IMO with the PMI. After buying my home in 2019, I feel like it’s almost impossible to buy a home if you haven’t saved up over the years. Home buying is really planning. You can’t just say, interest rates are low and gonna by tomorrow. I see many friends and relatives say that and then they realize they came affords a home, especially in California.
We just found out that if we go with an FHA loan we can't buy a house with chipped paint because a house with chipped paint will fail an FHA inspection. A lot of the time home sellers want to sell as is (in my town).
Considering veterans make up about 7% of the population and being 5% closed, I think they are doing quite well. According to my Agent, VA owned home owners would prefer to sell to a to VA buyers. The only problem is that is a needle in a haystack.
I just purchased a home in CA with an FHA loan . Three offers on three different properties and the last one accepted. No appraisal waivers, no inspection waivers, just a straight deal. I mentioned to my agent about this video and that I thought it would take a lot longer to get an FHA loan accepted. He looked right at me and said "It isn't June anymore..."
This is definitely the case in the philly area market. You were talking about skipping the 8s, 9s, 10s if you're going for FHA, but I've even seen some listing that I would call 5s or 6s that straight up have "No FHA offers" in the descriptions
I'm dubious that these stats are being interpreted accurately. We have low inventories (not just because of buying but people not selling) and it seems that most of the buying is happening in limited markets. Could the reason we're seeing crazy amounts of cash and conventional is that they're the only ones in a position to move/buy right now? People who'd use FHA aren't in the position to buy. Sure they're out there but most can't afford the inflated pricing.
We got our offer accepted and hopefully will close on the 30th. In phoenix. Granted it took us three times.... Way over our initial budget but still doable. We did get FHA but we know better to stay FHA so we will fix our credit in the next six months refinance to conventional. This market is crazy. We didn't want to wait another year and be priced out. We didn't need DPA but I'll be honest, we go into the house with cash in the bank because we didn't need the full down payment.
Good luck. Just bought in Phoenix Metro, too. Crazy market, for sure. I was disappointed to have to shell out as much as we needed to. Apparently, the good deals were some years ago. Glad your FHA loan has been accepted. Provided you end up closing, be sure to have your home looked over thoroughly. Ours has foundation problems, needs new flooring, needs the drainage redone, and needs a new roof. And we still bought at $475k! But, we also had additional funds for crazy repairs like the ones I mentioned. If your home has S-tile, I was told that they're phasing out those tiles in about the next 1-2 years, so I'd get a roofer in ASAP if that applies to you.
@@bencastro921 These days even rent could make you feel 'house poor'! We honestly live a very simple life. No real debt, one credit card which is paid off and no car payment. That's the ONLY reason we could go higher in the first place. And once we refi that's an additional 250 a month we get off our mortgage. We won't be house poor but we aren living the glamorous life either 😆.
@@Awakenthemasses2016_thetruth Love it, congratulations on staying on top of your finances. As for being glamorous, there’s no need to keep up with the Joneses. It feels so much better having minimal debt. Again congratulations on the house!
@@lyndagruen2047 Congratulations on getting your house! I think we all missed out on buying last year. We haven't found a house yet that doesn't have issues. One of the things with FHA is that you must get the house inspected. Ours also has something going on with the foundation. We sent a repair request to seller. Praying they fix it or give us a credit towards fixing it ourselves. My husband is pretty handy so not worried about small things but foundation, roof and A/C are things we want them to fix before we get into it.
😧 and like a super hero here you are, timing incredible. My husband and I were just turned down for a conventional and we were JUST about to apply for a FHA...Thank You🙏🏼
I applied for an FHA loan with credit in the high 700s. The only reason I went that route is because I was told (by a realtor nonetheless) that you had to have 20% down for a conventional.
That’s been my concern and I didn’t know that! Thanks for sharing. I’m not going fha because of low credit I have good credit just don’t have and don’t want to put down a high down payment
FYI, waiving your appraisal contingency on an FHA loan isn't a huge deal because...at least in CA...because the FHA/VA Amendatory Clause trumps those contingency waivers.
While my guess is that FHA is less competitive than conventional, the data shown does not conclusively show that FHA applicants have fewer chances of successfully bidding on a home. That data could also indicate that fewer persons with FHA financing are applying to attempt to purchase a home. To prove that FHA buyers have lower chances, we would have to know how often their bids were accepted when compared to buyers using conventional financing, cash offers, and VA loans. With that said, a big issue for FHA loans is that there are limits for how much financing is available for a home based on the geographic area. This can prevent FHA buyers from making successful bids, because they have a ceiling that other buyers do not have. Also, in most cases, sellers don’t care about the buyer’s financing, because they’re paid off regardless. It makes no difference to a seller where a buyer gets their money from. If a buyer defaults on a loan, that’s a problem between the buyer and their lender. In general, the seller of the home is long out of the equation when a buyer defaults as they were paid off during escrow. The main exception to this would be if the seller offered the buyer a carry back mortgage. In that situation, the seller might lose money during a foreclosure, but they might also get the title to the home back.
It’s possible in FL. There’s a couple on RUclips and they shared their process...paying over $200 in PMI, but the house is move in ready and what they wanted. I was honestly shocked they got a house then I realized that FL is just different in some areas.
Javier! Appreciate your work! You’ve helped me with my first home purchase back home for me in Houston. I’m here in Phoenix visiting for a wedding I owe you a drink! Hope to meet you man! Thank you again!
And here I just prequalified for an FHA loan too. So I guess I'll give the rest of the video a watch to learn why. Edit: Watched it, I guess I'll just give up on the idea of owning a home this year so instead I'll just go back to saving up for 100% down because F*** this confusing crap.
Just because 15% of sales are FHA doesn't mean that you have a 15% chance of closing the deal if you are FHA. That assumes an equal spread. You need to look at the ratio between who actually buys houses vs the applicant pool.
Husband and I have been through the ringer in the dallas market trying to buy a house. We have qualified for a conventional loan and keep offering 15-20k over asking with appraisal waivers and still nothing. We are throwing in the towel, hoping things even out...
Sellers also don't like the intrusive process of FHA inspectors who seem to find issues with their home. You cannot avoid that if the buyer is using FHA for financing.
Technically you said it before 2 seconds (proof 0:02), lol so thank you for getting straight to the point & not waiting until the end to give us the answer to the title. Time is valuable.
I got fha with a over 700 credit score no debts making good money my bank screw me. Now if i want Conventional i have to start another 30 years if I refinance. Javier is right if you can do conventional go for it don't let them give you fha you'll be stuck with the PMI for the rest of your life. The reason why I was told i didn't qualify fora conventional was because I need it to have more money in the bank. You all out there save save save
With that pie chart, is that accounting for the number of folks attempting with a VA loan? We can't really get data on those with a VA loan and fail getting a house
This definitely sucks. My credit score is in the 760s but I need to use FHA so I can use my commission income. Conventional loans requires that I have 2 years of commission income.
A home I looked at was listed as conventional or cash only. In a market like Phoenix (or in my case, Charlotte) they want cash or good as cash, period. And while we’re here, screw these Cali and NY transplants! They’re KILLING our market and because we’re becoming a tech hub it’s only getting worse 😣
Actually paying down all debt and having trade lines (credit cards) open is a best option. Definitely don’t close them out, at least don’t so prior to close of escrow should you be so lucky. Lowering your debt service does two things: it puts more cash back in your pocket which you can obviously save for the higher down payment but it also lowers your DTI (debt to income) ratio and that makes you look better to lenders. You can therefore buy more home because you have more to service that home debt. Definitely become debt free because in a few years, when the Fed raises the Prime rate, all credit card interest debt will be through the roof.
Man the market already has me bummed, but fha/usda is going to be my only option for a while. Of course I can’t buy for a couple years. Maybe the market will calm down a bit by then.
Don't rush yourself. Build good credit so you don't have to only rely on FHA. Save up 3-5% down for a desired price range. You want to be prepared to buy. You don't want to buy via shortcut(FHA) with high DTI and mediocre credit. Sure FHA qualify you, but are you ready to pay for those monthly payments? Talking about the upfront funding fees that are likely to be added to your loan, PREMIUM mortgage insurance, and higher interest rate due to your credit score. I wouldn't rush it. You want to buy because you're able to tackle that loan. Don't buy just because you can, thru FHA.
@@hangguy209 it’s not that we don’t have that money saved or can’t afford it’s because we got behind for a while due to my husbands illness resulting in a chapter 13. So we are waiting until we close that in 2 years and if we went conventional that would be another 2 year wait regardless. And given how expensive renting is in our area it still makes more sense to buy FHA and refinance in a few years than it is to pay twice as much for the house we’re currently living in.
@@jellybeansbud3610 i mean if you're up for it, go for it. But remember the rates today are at the lowest. What are the odds you will refinance later into a better rate? That said, i hope you're in good hands.
@@hangguy209 it wouldn’t make a difference. If I buy in 2 years and refinance in a couple more or if I wait 4 years to buy conventional it is the same. Either way it is 4 year u til I can buy conventional regardless. I literally cannot finance conventionally for another 4 years because of the chapter 13 regardless of my credit.
Ok, I'm going to preface this with A) I'm Canadian, and B) I'm still in the rental market, so I don't have a lot of knowledge here... FHA buyers are (generally) first time buyers who have slightly lower credit scores, but conventional buyers are often folks selling their current homes, with higher scores- right? ....Is there any difference to the seller when it comes to being paid (FHA vs conventional)? Again, lol, maybe my Canadian is showing, but if your getting the same cheque at the end of the day, wouldn't you want to sell to the family that is struggling?
No, they are looking to get the most money AND the most reliable closer. It's not the most charitable way to go for sure but it's 100% the reality in the market. They want to look out for their families interests first, not the strangers that will be living in a home they are leaving.
If you noticed one of the biggest pros of an FHA was conveniently left out of the video and the biggest con (PMI) was accentuated as something you can never get rid of. Instead of a 20% downpayment, you only need to pay 3.5%... yes, you heard it right. For a $300k home, instead of paying $60k (which is like a punch in the gut), all you need to pay is $10.5k. Oh but the PMI lasts forever until you sell.... in what world would you not refinance in the next year (after all repairs/upgrades are made)? You not only use the appreciated value, but you can lower your monthly payments to something amazing
You can buy use conventional for 3%, 5%, and 10% not just 20%. Also it’s extremely unwise to purchase a home and “hope” the market the stays great and your life circumstances will change that you can refinance in a year. That’s terrible advice. Get the best loan you can get now, don’t get something you’re not happy with and think “oh well I’ll just lower the payment when I refinance”
Lender here: 3% is minimum but normally I advise 5% down to get a better rate. You'll still have pmi until you hit 80% LTV but unlike FHA, pmi is for life of loan with a few exception. But honestly, if you can qualify for conventional, go conventional. 98% of the time, a seller will overlook your bid if you're prequal with FHA in today's market.
Honestly, I am skipping FHA. A down-payment or smaller city on the big city border is far easier a limitation than the higher monthly payments from FHA insurance and I would still have to make a down-payment anyways.
Both loan types have pros and cons. However, FHA should not be classified as the loan for the have nots. The ability to qualify for a home loan is not only based upon credit score but also ones liquidity. Work to qualify for both, but consider FHA because of the stringent appraisal and inspection process. In a market where existing homes are being sold ‘as is’, via virtual tours, and often before the the coming soon banner is removed and while new builds are being made quickly with popsicle sticks, toothpicks, Saran Wrap, and Elmers glue; buyers need something that will benefit them, not the seller. I didn’t realize FHA got so much hate, but I do believe that presenting the seller with both approvals is beneficial. Consider that if a seller wants to move forward with FHA, the quality of the home and the character of the seller might be above board as they are willing to sell at a fair price based upon standards; not money. Yes, FHA might lose the sale, but no one wants to spend money on a house that took great senior pictures but upon closer inspection is nothing more than a pig in lipstick.
@@mssha1980 It’s possible that my idealism is regional. Of all the homes I’ve sold, I’ve never cared about the buyers loan type. Of all the homes I’ve bought, I’ve only encountered one realtor that insisted I move forward with my conventional approval. I walked away and the house eventually sold for less than my FHA offer. IMO, a seller should not limit their pool based upon a loan type. That said, cash is king in my region. Out of state buyers are killing it here with their promises of cash with no contingencies, appraisals, or inspections. Additionally, cash affords them the luxury of not being the highest bidder to get the sale. That’s my regional reality.
@@vianeyosorio5634 I guess I have to go back to my broker and ask what happened. When I got the pre approval I never got to ask any questions they just automatically told me that I am pre approved for the fha. I never got any explanation or anything. Just a...here is ur letter, go find a house.
I'm going for FHA because I want a duplex and I won't have the 15% down needed through a conventional unless I push my house hunting a 1-2 years. No other reason. Unless I do have other options?
I hope you or someone else with experience can answer my question ... can you re-negotiate the price of the home during the escrow process if the home inspection (not appraisal ) reveals a ton of issues ?
Can you do an In depth video on Student Loans. A lender is saying there are No Options for my husband and I since we owe a lot in student loans. Please help! In Tx.
Xavier, why does it matter to the seller has a say whether or not a person is a strong buyer when the bank ultimately is the one making the decision to lend you the money to purchase the home and they walk away with cash on hand? It makes no sense whatsoever that a seller holds so much power over a buyer. i understand the seller wants to get the most money out of their home so they look for the best offer. However, the buyer has a down payment, closing cost and if they are FHA vs Conventional why should it matter? Isn't it up to the bank to ensure they get their monthly dues at the end of the day. Just saying!
One thing Javier did not mention is that there are a lot of government oversights for a seller to go through if the seller accepts an FHA offer. Appraisals on FHA are horrible as well as turnaround time and also qualifications that the seller has to meet, just to name a few. A conventional loan does not have the government oversights which many seller would prefer.
It definitely matters. It is the seller's home, so, other than protected status, the seller has every right to accept whichever bid they want. FHA loans impose more difficulties on sellers; are more likely to offer too low an offer; and are more likely to fall through, if the seller is unable to get the home to meet all FHA requirements. They are a headache for sellers, so they're viewed as inferior offers.
Javier, I just got approved for a loan but they gave me an fha loan, I asked the loan person why because my credit score is around 780 and he said that it was because I wanted to buy a fourplex and that I would only qualify for a conventional loan with a 25% down payment. He said this conventional loan with a 5% downpayment would only apply if I was buying a single family home is this true?
Why does the seller even care what kind of loan the buyer has? I answer that here: ruclips.net/video/-v5ouFucnlI/видео.html
sorry to be off topic but does someone know a trick to log back into an Instagram account?
I somehow forgot my login password. I love any assistance you can give me!
@Maverick Elias instablaster ;)
@Jayson Lee Thanks for your reply. I found the site thru google and Im in the hacking process now.
I see it takes a while so I will reply here later when my account password hopefully is recovered.
Under contract now using FHA on a $340k home built in 2014 over 2,400sqft in central Florida, we did not offer anything over asking price and the seller is paying a portion of our closing cost . We were approved for both FHA and Conventional but ultimately choose FHA because the interest rate was lower (locked in 2.8%) and the monthly PMI payment was $50 cheaper. We will refinance in a few years and get conventional to knock off the PMI. But I said all that to say everyone’s experience will differ, don’t get discouraged guys ❤️
Thank you
This was good to hear. My plan is to refinance but I’m unsure if I wanted to wait to go conventional or FHA
Where the heck in central FL did you buy? I'm from that area and the market is hot,hot,hot. Even my family who owns homes complains about it
@@jellyrcw12 Where is the market hot I live in central Florida as well and I'm gonna start looking next week. Probably wont qualify for conventional.
@@MsPink0769 I'm from the Orlando area and my family says that homes easily sell $20k-40k over asking price
Lol. They treating FHA like Section 8. 😂
🤣
Dang that's exactly how I feel!
Seriously!
I guess I am considered FHA 3 yrs ago but F it im a homeowner IDGAF now
Right now since the demand is higher than the supply your really at a disadvantage trying to use fha but good luck.
Boy said miss me with that drawn out intro!
🤣🤣🤣
Hey what’s up guys is Chad Seagraves here back with ANOTHER REAL ESTATE video. I’m today’s video we are going to talk about the TOP REASONS why this market ABOUT TO BUSS. And if you stay until AFTER the video I’m going to show you 7 ways to HACK real estate and make MILLIONS. Make sure to hit like, subscribe, and also don’t forg.... *dies of lung failure for not breathing at all during the intro.
@@JavyVidana I'm the person that will skip all of that lol; my time is valuable so thank you for getting straight to the point.
bruh i straight up LIKE just for the full respect in keeping it real and telling me the click bait answer in 5 seconds and then also having the gaul to admit it!! love it lol
My husband and I are in escrow right now. FHA loan, no contingencies, $6K above asking price, and paying for all our closing costs. We went up against 7 other offers here in the Southern Arizona area.
Fha protects you from paying to much. FHA also has alot of requirements the home has to fall into. Thats why sellers dont like FHA.
It's crazy how hard getting your basic needs (i.e a roof over your head) is so difficult even when you have the means to do it.
Lmao 😂 I’ll time stamp the answer y’all 0:00
Dang the most convenient time stamp ever
💀
Who seriously cares if i buy a home with conventional or fha.Either way it beats the hell outta my old apartment.
The SELLER cares. Conventional loans have less hoops to jump through so the deal is more likely to go through and actually close. If you are up against multiple offers the seller's usually gives preference to conventional loans over FHA.
It's not even just the loan type. I feel for first time buyers especially. In a seller's market, your lender and agent also impact how seriously your offer is taken. Local lenders who are known to vet their clients thoroughly (and agents who are known to do the same) are given greater credence that the sale will close. The seller wants the buyer most likely to go the distance, not necessarily the highest offer or 'best' terms. It's been that way since at least 2014. Also - love the shitty flute!
as a first time home buyer, I originally was looking to get a house with FHA. but after a week it was really hard. Switched to conventional after learning about the benefits. went into escrow for a nice home a week later. def the way to go!!
Yup personal experience conventional loan better especially in this housing market.
Did you have to pay more out of pocket for conventional vs FHA?
@@MsPink0769 yes but there are benefit to both with a conventional loan show your more stable they don't have to go off your sopuse income no pmi. FHA can be good to pro are you dont but too much down it usually look at a stepping stone but you will have a pmi but are ways to get around that both have pros and cons.
@@MsPink0769 yes you pay more out of pocket upfront but the benefit of that is that it can lower your APR %, depending on how much you put down. once you reach a certain amount of equity that premium mortgage insurance you pay monthly is no longer a cost. this is what ultimately can save you a couple thousand. if you get FHA you have to pay that PMI for the life of the mortgage. better to pay upfront but also don't wanna be house rich and money poor. pay what you can afford. way the pros and cons. FHA requires at least 3.5% downpayment (the pro) however its much harder to get your offer accepted on a home. (con)
Your videos are getting better and better May the RUclips gods shine upon you. Good Vlog
I got my house (in Phoenix) April 2020. Right on the cusp of everything getting really crazy. We made 12 offers on 12 different places within our budget on FHA. Didn’t get any of them. Once we went conventional (lowered our price of houses we were looking at) we got one the first try with no concessions and we used the down payment assistance. So it only cost me about $1500 out of pocket to get into the house. Couldn’t have had better timing.
FHA loans are junk loans, imo. They are too much of a headache for sellers and take tons of money from the buyer, too.
I went to get pre approved from my bank and they asked what my credit score was and I was like idk, 700ish. They ran my credit and it turns out It was 799
Dam bro good deal
I don’t like or comment on videos usually. But the first 2 seconds made me do just that.
My man..
Same
At this point I’m not even looking for a home anymore but I’m still here watching lol 🤓
Same
In the same position.
Same lol
In the same boat 🚣♀️
All you can really do is save money. It will take years depending on where you live. Think about it this way, if the market crashes, then you have money saved up to jump in. If not, you’ll eventually save up enough to buy a house. It took me 12 years, but it’s doable.
I recently bought a triplex in Idaho with FHA. Only had to put 3.5% down versus 25% percent down. 25% was on the fringe of what I could afford, so it was awesome to be able to finance with such a small and less risky down payment.
Just managed to find a sweet new construction townhome deal in suburban ATL with an FHA loan + 1st time homeowner DPA + builder's incentives. Got one of the first lots after looking around for almost 2 years. Dodged any more shenanigans, discrimination or competitive offers.
Depending on the market there may still be hope for you if you're serious, qualified and willing to look for new builds.
Appreciate the content as always Javier!!
Where???? I am looking to buy in the suburban ATL area soon
@@curatedchristinaa Hey check around the Stonecrest, Lithonia, and North Decatur areas. Prices have not skyrocketed as far as things further inside of the Perimeter. Central to Southwest Gwinnett County is also an option.
I'm kind of being forced into buying a home right now because I'm being forced to move, and I cant stomach paying more money to rent a crappier place than I'm in now ugh. Luckily it's only a year earlier than I was planning and I qualify for a decent conventional loan at a good interest rate but the market in AZ is still crap. I think I would be freaking out right now if I hadnt been watching Javier for a few years and taken a first time homebuyer course around Thanksgiving. I highly recommend anyone who's considering buying in the next few years to take one early, I regret not doing it sooner. It was sooo helpful.
I like how you immediately got to the point. Sometimes, people will go in for over 10 minutes before even getting to the point. I don't watch through.
javier is a living breathing meme!!!! i love this guy
I’m glad you specifically say this is what’s impacting your market in Arizona and that it’s still possible in your area. Here in PA it’s not like that, in most areas. Yes our market is red hot but FHA isn’t necessarily looked down at in this manner. Now, of course areas vary in PA, and it’s also up to the seller to say NO FHA. I’m a realtor in PA and I’ve helped first time homebuyers get their offer accepted, using FHA. It’s all about strategy and realistic expectations. If your realtor always responds with “yes it’s all possible” then chances are you’ll be getting used to rejection and viewing 10-30 homes before getting tired and giving up.
People! Use whatever loan you want! Including FHA. The only THING any Seller understands is CASH. If you use any type of loan be it Conventional, FHA, or VA Sellers don't understand a word of any of that. All they care about is whether or not you are going to waive the inspection, the appraisal, or have some crazy conditions. That is it. If anybody has a prejudice against a particular loan type it is Realtors, not Sellers.
You going to talk about companies buying up the single family houses recently?
You are my favorite real estate RUclipsr! Top notch info always!!
Thank you Steffanie!
Pretty sure people would choose conventional if they could. I'm a loan officer and would always choose the best loan for a client based on their score and how much down they got available. End of the day, many people just don't got options. We always try conventional but scores are just not always high enough.
I just got my mortgage score to 640 hopefully that’s enough for conventional lol. But not giving up
@@heyevanletsgo3911
Lol nice but that just makes it for FHA.
You need 700 for conventional. Don't sweat it. FHA works just fine.
Kauigirl nailed it 👆
Thumbs up to vote Javier for world hottest man 2020!
I’d tap that for two green mana.
@@eliphs11 😆😆🍺🍺🍌🤡🤡👁
We are currently trying to purchase (CA) with FHA and it has been heart break after heart break. Even offering $40k over cash hasn’t helped us secure a home. This has been really discouraging for my wife and I. Will have to look into conventional. Thanks for the another great video!!
Going conventional should help. The reason why is because FHA loans impose things on sellers that conventional loans are more lax on. Just a head's up: we bought in the Phoenix Metro market (2021). We had to buy "as-is", waive the appraisal contingency and even submit a love letter with no protected class info - just stuff like what we loved about the home and community, no mention of a spouse / kids, etc. Oh, and we offered a down payment of 42%, with $10k EMD. We won a 7-bid war, and the home we bought needs a good bit of work: foundation repair, drainage, new roof, new flooring, etc. Just be ready if you're in a crazy market like ours.
look into conventional.... also a tip that helped us secure a home in this crazy market (and helped two of our friends on their first try) *offer to pay over asking by X amount AND if it doesn't appraise to that amount you offered, then say you will pay the difference from asking to your offer IN CASH. This way you are VERY similar to the cash offers without having to have to pay FULL in cash. (you are just paying that small amount in cash)....with this always make sure you have the cash to back up that offer as it will be in writing. GOOD LUCK:)
Lmao absolutely love the first two seconds
🥸
I got lucky. I’m currently under contact with an FHA loan and will close next month with seller who is moving into a new home with a VA loan...haha. I qualified for conventional, but was maxed at a certain point which is why I had to go FHA. Javier is right about people looking down on those who have FHA loans, it sucks and it’s unfair. I’m always going to root for more regulations because it’s crazy out there.
I live in California, so as everyone knows, houses are easily $500K plus here. I’ve been saving right out of college. Took me 12 years to save up for 20% down. I also got lucky that the seller was able to pay half my closing costs. Anything but 20% is a waste IMO with the PMI. After buying my home in 2019, I feel like it’s almost impossible to buy a home if you haven’t saved up over the years. Home buying is really planning. You can’t just say, interest rates are low and gonna by tomorrow. I see many friends and relatives say that and then they realize they came affords a home, especially in California.
Why would a seller care what kind of loan it is? Don't they get their money either way?
It’s what’s in your best interests
The hoops they can make the buyer jump thru. A seller in this hot market will go with conventional for the ease of closing
So sometimes FHA doesn’t move as fast either and the seller doesn’t want to waste their time with a deal that may fall through the cracks
Thanks for the info! That makes sense!
We just found out that if we go with an FHA loan we can't buy a house with chipped paint because a house with chipped paint will fail an FHA inspection. A lot of the time home sellers want to sell as is (in my town).
Considering veterans make up about 7% of the population and being 5% closed, I think they are doing quite well. According to my Agent, VA owned home owners would prefer to sell to a to VA buyers. The only problem is that is a needle in a haystack.
I got my fha accepted. On a 280k house. If I can do it you can to
Congrats 🏡
That's a run down house in certain places here in CO
The humor in this video is top notch 😂
This is a great video because I did not know that PMI was permanent on FHA!!!
It has been since 2013
Still a refinancing option
What first time buyer has more than 3.5% down?!?!?! Virtual teardowns in my area are $350,000......
Reasons why we love you 😂 straight to the point
I just purchased a home in CA with an FHA loan . Three offers on three different properties and the last one accepted. No appraisal waivers, no inspection waivers, just a straight deal.
I mentioned to my agent about this video and that I thought it would take a lot longer to get an FHA loan accepted. He looked right at me and said "It isn't June anymore..."
This is definitely the case in the philly area market. You were talking about skipping the 8s, 9s, 10s if you're going for FHA, but I've even seen some listing that I would call 5s or 6s that straight up have "No FHA offers" in the descriptions
I'm dubious that these stats are being interpreted accurately. We have low inventories (not just because of buying but people not selling) and it seems that most of the buying is happening in limited markets.
Could the reason we're seeing crazy amounts of cash and conventional is that they're the only ones in a position to move/buy right now? People who'd use FHA aren't in the position to buy. Sure they're out there but most can't afford the inflated pricing.
We got our offer accepted and hopefully will close on the 30th. In phoenix. Granted it took us three times.... Way over our initial budget but still doable. We did get FHA but we know better to stay FHA so we will fix our credit in the next six months refinance to conventional. This market is crazy. We didn't want to wait another year and be priced out. We didn't need DPA but I'll be honest, we go into the house with cash in the bank because we didn't need the full down payment.
Hopefully you guys didn’t overstretched yourselves that could result being house poor.
Good luck. Just bought in Phoenix Metro, too. Crazy market, for sure. I was disappointed to have to shell out as much as we needed to. Apparently, the good deals were some years ago. Glad your FHA loan has been accepted. Provided you end up closing, be sure to have your home looked over thoroughly. Ours has foundation problems, needs new flooring, needs the drainage redone, and needs a new roof. And we still bought at $475k! But, we also had additional funds for crazy repairs like the ones I mentioned. If your home has S-tile, I was told that they're phasing out those tiles in about the next 1-2 years, so I'd get a roofer in ASAP if that applies to you.
@@bencastro921 These days even rent could make you feel 'house poor'! We honestly live a very simple life. No real debt, one credit card which is paid off and no car payment. That's the ONLY reason we could go higher in the first place. And once we refi that's an additional 250 a month we get off our mortgage. We won't be house poor but we aren living the glamorous life either 😆.
@@Awakenthemasses2016_thetruth Love it, congratulations on staying on top of your finances. As for being glamorous, there’s no need to keep up with the Joneses. It feels so much better having minimal debt. Again congratulations on the house!
@@lyndagruen2047 Congratulations on getting your house! I think we all missed out on buying last year. We haven't found a house yet that doesn't have issues. One of the things with FHA is that you must get the house inspected. Ours also has something going on with the foundation. We sent a repair request to seller. Praying they fix it or give us a credit towards fixing it ourselves. My husband is pretty handy so not worried about small things but foundation, roof and A/C are things we want them to fix before we get into it.
😧 and like a super hero here you are, timing incredible. My husband and I were just turned down for a conventional and we were JUST about to apply for a FHA...Thank You🙏🏼
I applied for an FHA loan with credit in the high 700s. The only reason I went that route is because I was told (by a realtor nonetheless) that you had to have 20% down for a conventional.
I’m sorry they told you that. There’s conventional loans that have 3% down. I guess it depends on individual situations
That’s been my concern and I didn’t know that! Thanks for sharing. I’m not going fha because of low credit I have good credit just don’t have and don’t want to put down a high down payment
FYI, waiving your appraisal contingency on an FHA loan isn't a huge deal because...at least in CA...because the FHA/VA Amendatory Clause trumps those contingency waivers.
While my guess is that FHA is less competitive than conventional, the data shown does not conclusively show that FHA applicants have fewer chances of successfully bidding on a home. That data could also indicate that fewer persons with FHA financing are applying to attempt to purchase a home. To prove that FHA buyers have lower chances, we would have to know how often their bids were accepted when compared to buyers using conventional financing, cash offers, and VA loans.
With that said, a big issue for FHA loans is that there are limits for how much financing is available for a home based on the geographic area. This can prevent FHA buyers from making successful bids, because they have a ceiling that other buyers do not have.
Also, in most cases, sellers don’t care about the buyer’s financing, because they’re paid off regardless. It makes no difference to a seller where a buyer gets their money from. If a buyer defaults on a loan, that’s a problem between the buyer and their lender. In general, the seller of the home is long out of the equation when a buyer defaults as they were paid off during escrow.
The main exception to this would be if the seller offered the buyer a carry back mortgage. In that situation, the seller might lose money during a foreclosure, but they might also get the title to the home back.
It’s possible in FL. There’s a couple on RUclips and they shared their process...paying over $200 in PMI, but the house is move in ready and what they wanted. I was honestly shocked they got a house then I realized that FL is just different in some areas.
Knew it before I clicked it LMAO Thanks for being straightforward Javi
Javier! Appreciate your work! You’ve helped me with my first home purchase back home for me in Houston. I’m here in Phoenix visiting for a wedding I owe you a drink! Hope to meet you man! Thank you again!
And here I just prequalified for an FHA loan too. So I guess I'll give the rest of the video a watch to learn why.
Edit:
Watched it, I guess I'll just give up on the idea of owning a home this year so instead I'll just go back to saving up for 100% down because F*** this confusing crap.
If you can, 20% down will take you out of pmi with a conventional. But 100% down cash is king. Best of luck sir!
There are 3% and 5% conventional loans.
Just because 15% of sales are FHA doesn't mean that you have a 15% chance of closing the deal if you are FHA. That assumes an equal spread. You need to look at the ratio between who actually buys houses vs the applicant pool.
Can you do a VA video
What if you use FHA to buy land for construction of new house? Is land just as bad/competitive as move-in-ready?
“... that’s impossible. Only a real estate Chad can save the market...” 😂
Husband and I have been through the ringer in the dallas market trying to buy a house. We have qualified for a conventional loan and keep offering 15-20k over asking with appraisal waivers and still nothing. We are throwing in the towel, hoping things even out...
Thanks man, best first 2 seconds 🤣👍 great channel, very informative and detailed, keep up the good work 👍👍
I just have to say I love the memes he throws in these vids. Gets me everytime
Sellers also don't like the intrusive process of FHA inspectors who seem to find issues with their home. You cannot avoid that if the buyer is using FHA for financing.
This guys is so knowledgeable guys, I bought a house last years and his videos help.
Got Student Loans, run away from FHA. Kills your buying amount power.
Not necessarily, if they’re not that high it should t be so bad, if they’re high yes it will not help
False. It depends on how much debt you have.
Remember that FHA gets your feet at the door of homeownership.
Do not run from it. Do your due diligence.
Why do sellers care what type of loan the buyer has? if they are getting paid what difference does it make?
Different requirements for each loan. Same reason people will take a cash buyer over fha
Timing. Closing takes at least 45 days, I believe it's cause underwriting takes so long.
I have a 800+ FICO, I was being pushed and pushed on FHA loans. I wanted conventional because of the PMI.
There's more fees that roll into the FHA loan
Lenders get commission
Lmao it took me 2 years to get FHA ready and you come out with this shit 🤣
Lol 😂 Me too
You are the freaking truth! I’m in Texas and I send quite a bit of your videos to my clients since I’m just getting my feet wet!! Big 🥰🥰 to you!
In the Raleigh, NC market it's more like 6-8% of closed homes with FHA...and that's in the more rual areas 😬🥴
Can you get a conventional loan with less than 20% down payment?
Technically you said it before 2 seconds (proof 0:02), lol so thank you for getting straight to the point & not waiting until the end to give us the answer to the title.
Time is valuable.
I got fha with a over 700 credit score no debts making good money my bank screw me. Now if i want Conventional i have to start another 30 years if I refinance. Javier is right if you can do conventional go for it don't let them give you fha you'll be stuck with the PMI for the rest of your life. The reason why I was told i didn't qualify fora conventional was because I need it to have more money in the bank. You all out there save save save
FHA loans have outrageous PMI , also you have to finance PMI upfront premium ( which is a lot )
With that pie chart, is that accounting for the number of folks attempting with a VA loan? We can't really get data on those with a VA loan and fail getting a house
That California Love drop had me weak 😅
Scrolling the comments section to look out for who caught that haha
As long as it pays for the house I want Idc no matter how bad it or even food stamp loan ...don't think too much about it
Hello Javier, Am I secure under a new construction contract & earnest paid? If financing under FHA?
Lol the title got me, and the video reminded me why I subscribed 👍 thanks for the great info again
This definitely sucks. My credit score is in the 760s but I need to use FHA so I can use my commission income. Conventional loans requires that I have 2 years of commission income.
LMFAO! THAT WAS AN AWESOME INTRO YOU GAVE THE ANSWER RIGHT AWAY I DIDN'T EXPECT THAT THANK YOU
A home I looked at was listed as conventional or cash only. In a market like Phoenix (or in my case, Charlotte) they want cash or good as cash, period. And while we’re here, screw these Cali and NY transplants! They’re KILLING our market and because we’re becoming a tech hub it’s only getting worse 😣
Javi, you should do a session on retirement homes. We will be on limited funds and no way can you afford a 2K plus mortgage for average folks.
Actually paying down all debt and having trade lines (credit cards) open is a best option. Definitely don’t close them out, at least don’t so prior to close of escrow should you be so lucky.
Lowering your debt service does two things: it puts more cash back in your pocket which you can obviously save for the higher down payment but it also lowers your DTI (debt to income) ratio and that makes you look better to lenders. You can therefore buy more home because you have more to service that home debt. Definitely become debt free because in a few years, when the Fed raises the Prime rate, all credit card interest debt will be through the roof.
I'm really surprised you don't mention anything about the option to refinance with a conventional loan.
Man the market already has me bummed, but fha/usda is going to be my only option for a while. Of course I can’t buy for a couple years. Maybe the market will calm down a bit by then.
Don't rush yourself. Build good credit so you don't have to only rely on FHA. Save up 3-5% down for a desired price range. You want to be prepared to buy. You don't want to buy via shortcut(FHA) with high DTI and mediocre credit. Sure FHA qualify you, but are you ready to pay for those monthly payments? Talking about the upfront funding fees that are likely to be added to your loan, PREMIUM mortgage insurance, and higher interest rate due to your credit score. I wouldn't rush it. You want to buy because you're able to tackle that loan. Don't buy just because you can, thru FHA.
@@hangguy209 it’s not that we don’t have that money saved or can’t afford it’s because we got behind for a while due to my husbands illness resulting in a chapter 13. So we are waiting until we close that in 2 years and if we went conventional that would be another 2 year wait regardless. And given how expensive renting is in our area it still makes more sense to buy FHA and refinance in a few years than it is to pay twice as much for the house we’re currently living in.
@@jellybeansbud3610 i mean if you're up for it, go for it. But remember the rates today are at the lowest. What are the odds you will refinance later into a better rate? That said, i hope you're in good hands.
@@hangguy209 it wouldn’t make a difference. If I buy in 2 years and refinance in a couple more or if I wait 4 years to buy conventional it is the same. Either way it is 4 year u til I can buy conventional regardless. I literally cannot finance conventionally for another 4 years because of the chapter 13 regardless of my credit.
@@jellybeansbud3610 good luck! Hope you find something. It's a tough market for FHA. Like Javier said, you can't just eye for the 9s and 10s.
Do U talk stock?? U one of the realest RUclips. I would buy a subscription based video.
I got FHA in Bullhead city, AZ this year. I got 3.2%
I like the conventional loan better plus better chance of getting your bid accepted.
0:01 Thanks for the answer... leaving to watch other videos.
made offer this weekend - got outbid majorly - damn California is brutal out here , yo!
Ok, I'm going to preface this with A) I'm Canadian, and B) I'm still in the rental market, so I don't have a lot of knowledge here...
FHA buyers are (generally) first time buyers who have slightly lower credit scores, but conventional buyers are often folks selling their current homes, with higher scores- right? ....Is there any difference to the seller when it comes to being paid (FHA vs conventional)?
Again, lol, maybe my Canadian is showing, but if your getting the same cheque at the end of the day, wouldn't you want to sell to the family that is struggling?
No, they are looking to get the most money AND the most reliable closer. It's not the most charitable way to go for sure but it's 100% the reality in the market. They want to look out for their families interests first, not the strangers that will be living in a home they are leaving.
If you noticed one of the biggest pros of an FHA was conveniently left out of the video and the biggest con (PMI) was accentuated as something you can never get rid of. Instead of a 20% downpayment, you only need to pay 3.5%... yes, you heard it right. For a $300k home, instead of paying $60k (which is like a punch in the gut), all you need to pay is $10.5k. Oh but the PMI lasts forever until you sell.... in what world would you not refinance in the next year (after all repairs/upgrades are made)? You not only use the appreciated value, but you can lower your monthly payments to something amazing
You don't need 20% downpayment on conventional 3 is the minimum.
The point of the video is to show you the chance of your FHA offer getting accepted right now. That being said, you made some great points as well.
@@lisacastano1064 Isn’t that for first time home buyers only? I could be wrong
You can buy use conventional for 3%, 5%, and 10% not just 20%. Also it’s extremely unwise to purchase a home and “hope” the market the stays great and your life circumstances will change that you can refinance in a year. That’s terrible advice. Get the best loan you can get now, don’t get something you’re not happy with and think “oh well I’ll just lower the payment when I refinance”
Lender here: 3% is minimum but normally I advise 5% down to get a better rate. You'll still have pmi until you hit 80% LTV but unlike FHA, pmi is for life of loan with a few exception. But honestly, if you can qualify for conventional, go conventional. 98% of the time, a seller will overlook your bid if you're prequal with FHA in today's market.
Honestly, I am skipping FHA.
A down-payment or smaller city on the big city border is far easier a limitation than the higher monthly payments from FHA insurance and I would still have to make a down-payment anyways.
Both loan types have pros and cons. However, FHA should not be classified as the loan for the have nots. The ability to qualify for a home loan is not only based upon credit score but also ones liquidity. Work to qualify for both, but consider FHA because of the stringent appraisal and inspection process. In a market where existing homes are being sold ‘as is’, via virtual tours, and often before the the coming soon banner is removed and while new builds are being made quickly with popsicle sticks, toothpicks, Saran Wrap, and Elmers glue; buyers need something that will benefit them, not the seller. I didn’t realize FHA got so much hate, but I do believe that presenting the seller with both approvals is beneficial. Consider that if a seller wants to move forward with FHA, the quality of the home and the character of the seller might be above board as they are willing to sell at a fair price based upon standards; not money. Yes, FHA might lose the sale, but no one wants to spend money on a house that took great senior pictures but upon closer inspection is nothing more than a pig in lipstick.
You’re speaking idealistically. In real life people are accepting conventional and that’s what it is. If you have no other choice of course go fha
@@mssha1980 It’s possible that my idealism is regional. Of all the homes I’ve sold, I’ve never cared about the buyers loan type. Of all the homes I’ve bought, I’ve only encountered one realtor that insisted I move forward with my conventional approval. I walked away and the house eventually sold for less than my FHA offer. IMO, a seller should not limit their pool based upon a loan type. That said, cash is king in my region. Out of state buyers are killing it here with their promises of cash with no contingencies, appraisals, or inspections. Additionally, cash affords them the luxury of not being the highest bidder to get the sale. That’s my regional reality.
I have the money saved and the credit score in the 700s... could me being DACA recipient cause me to NOT qualify for a conventional loan?
You qualify for a conventional loan while being DACA 👍 you also qualify FHA as of January 2021.
@@vianeyosorio5634 I guess I have to go back to my broker and ask what happened. When I got the pre approval I never got to ask any questions they just automatically told me that I am pre approved for the fha. I never got any explanation or anything. Just a...here is ur letter, go find a house.
I'm going for FHA because I want a duplex and I won't have the 15% down needed through a conventional unless I push my house hunting a 1-2 years. No other reason. Unless I do have other options?
Conventional allows 3-5% down too
@@hangguy209 For a duplex tho?
@@Ashenkaniku i actually thought FHA didn't allow you to purchase duplex or condos.
@@hangguy209 you can get a duplex you have to live in one of the units for 1 year at least.
@@hangguy209 It allows up to 4 units I believe and as @M G said, 1 unit needs to be owner occupied for a year.
Thanks for the info, we appreciate you!
My current struggle 😩. I had two situations where my offer was neck and neck with an conventional buyer. You can guess who they chose.
I hope you or someone else with experience can answer my question ... can you re-negotiate the price of the home during the escrow process if the home inspection (not appraisal ) reveals a ton of issues ?
Can you do an In depth video on Student Loans. A lender is saying there are No Options for my husband and I since we owe a lot in student loans. Please help! In Tx.
Finally! I've always thought why doesn't someone do that. And then elaborate why
Xavier, why does it matter to the seller has a say whether or not a person is a strong buyer when the bank ultimately is the one making the decision to lend you the money to purchase the home and they walk away with cash on hand? It makes no sense whatsoever that a seller holds so much power over a buyer. i understand the seller wants to get the most money out of their home so they look for the best offer. However, the buyer has a down payment, closing cost and if they are FHA vs Conventional why should it matter? Isn't it up to the bank to ensure they get their monthly dues at the end of the day. Just saying!
One thing Javier did not mention is that there are a lot of government oversights for a seller to go through if the seller accepts an FHA offer. Appraisals on FHA are horrible as well as turnaround time and also qualifications that the seller has to meet, just to name a few. A conventional loan does not have the government oversights which many seller would prefer.
It definitely matters. It is the seller's home, so, other than protected status, the seller has every right to accept whichever bid they want. FHA loans impose more difficulties on sellers; are more likely to offer too low an offer; and are more likely to fall through, if the seller is unable to get the home to meet all FHA requirements. They are a headache for sellers, so they're viewed as inferior offers.
Javier, I just got approved for a loan but they gave me an fha loan, I asked the loan person why because my credit score is around 780 and he said that it was because I wanted to buy a fourplex and that I would only qualify for a conventional loan with a 25% down payment. He said this conventional loan with a 5% downpayment would only apply if I was buying a single family home is this true?